K'taka poll results lifts Sensex above 430 points, Nifty above 10900

15 May 2018

The broader NSE index was up 0.90 percent at 10,903.70 as of 0536 GMT, while the benchmark BSE index was 1 percent higher at 35,912.95. At 1.30 pm, the BSE Sensex was trading 126.33 points higher at 35,683.04 while the NSE Nifty50 gained 34.25 points to touch 10,840.85. State poll results can be presumed to be harbinger for 2019 elections, which is why the market is rejoicing. Tanveer Ahmed said HD Kumaraswamy has been offered the Chief Minister position by the Congress while the BJP has also reached out to the for a post poll alliance. "Whatsoever be the final outcome, this will give more depth to the market as concern over the performance of BJP in the next general election of 2019 will reduce", Vinod Nair, Head of Research, Geojit Financial Services Ltd, said. "The markets will now be more reactive to the global cues, which are a matter of concern specially the rising crude and dollar".

The Indian rupee too followed the stock market and fell below the 68 mark for the first time since January 2017, closing at 68.07 level.

Earlier in the session, both indexes rose over 1 percent to hit their highest in more than three months. The Shanghai Composite climbed 0.6 percent to 3,192.12.

On the global front, crude oil prices hit new 3-1/2-year high, backed by tight supply and planned United States sanctions against Iran. Behaviour of crude oil prices and currency movement will be closely monitored by the market participants. China is the biggest Asian economy, which is why all Asian markets also suffered from its own downturn.